Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

2019 Economic Predictions

Economics / Global Economy Mar 14, 2019 - 07:41 AM GMT

By: Boris_Dzhingarov

Economics Overview

The year is well underway and with it comes economic predictions that focus on the remainder of the year. This includes current trends for the global economy and one that is expected to drop as a leading economy.  It is expected that global growth will remain slow. While it enjoyed a boom of sorts after many of the world’s economies picked up near the end of 2016 that is now over. As we entered 2019, most of the G7 economies began to return to growth rates that were more inline with long-term growth histories.


The U.S economy is expected to drop as interest rates are increased and the high dollar continues to be a burden on net exports. The anticipated growth, which 2.8% in 2018, is expected to drop to 2.3% in 2019. The Eurozone is also expecting to see uncertainty as trade issues escalate and tensions grow relating to Brexit. It is expected that the European Central Bank will likely offer less support due to it ending its policy on quantitative easing.

Another economy facing declining growth is China. While the Chinese government will aggressively attempt to keep the slowdown to a minimum, the added tariffs by the U.S and China’s control of debt levels will result in its growth decelerating in 2019.

Additionally, the U.S dollar is expected to have an impact, at least a potential impact, on emerging market currencies. However, this is most likely to be seen in the latter part of the year. That will add fuel to the belief that the U.S economy is slowing and will overall, impact all other economies.

Economic Impact on Workers’ Wages

The reduction in growth will also see an impact on worker wages. That, in turn, will see those companies in labour markets will tighten salaries even if it sees more jobs being created. It could lead to increased wages for some as finding talent will become an issue. For many, that is good news, especially when it comes to recreational spending, often a deciding factor that spurs growth. One industry not expected to be impacted by economic reductions is sports betting. Its presence online has seen substantial growth throughout the world, and that is a direct result of sports betting information sites such as Efirbet.com, a leader in sportsbook affiliation. It draws attention to those that responsibly cater to this market through detailed, articulate and in-depth sportsbook reviews. While some unemployment rates will increase in markets such as Germany and the U.S, overall they are expected to remain low due to job creation.

Evidence of this has already been seen in Canada. The unemployment rate hit a 40 year low in 2017 going down to 5.8%. However, it has yet to drop any further, but it saw wages accelerating as the pools of available skilled workers dropped.  Other economies such as Belgium, Denmark and the Netherlands also are experiencing similar situations as Canada, and the U.K may see its levels at current levels as well.

2019 Trade Conflicts

It is expected that trade conflicts will continue to be an issue. This will only add to the uncertainty for businesses and policymakers. Business owners will need to deal with the impact of inflation, growth and tariffs while trying to determine how that will impact their customers and respective supply chains.

However, that being said, the main focus of creating those tensions is those between the United States and China. The risk of it escalating into a broader conflict is very real, and those in business will need to factor this into their business plan to allow for different scenarios.

United Kingdom expected to drop in world economy rankings

The United Kingdom, which is recorded at the fifth largest economy by the International Monetary fund in relation to the U.S dollar, is forecasting that it is likely to fall behind two other economies. This includes France and India and India might remain permanent. That is due to its being one of the fastest growing economies in the world. Its sheer size in population also offers favourable demographics that could see it catch up and surpass that of the U.K

By Boris Dzhingarov

© 2019 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules